The client is one of the largest departmental store retail chains in India, running a total of about 50 stores across the country. The business brief is to better understand customer behavior under such circumstances by analyzing the customers registered under its loyalty program. Specifically,
1. Drive better decisions by identifying customer segments to enable more effective one-to-one marketing efforts
2. Enable better decisions at the store level by understanding customer buying behavior inside the store
3. Maximize profitability by planning, executing and evaluating promotions more effectively
4. To create a repeatable process so client can deploy Analytics based solution across multiple stores rapidly and cost effectively
The store manages high variety of SKUs across 5 different product categories – Apparel, Footwear, Children’s Wear & Toys, Furniture & Home Furnishings, Beauty & Fashion Accessories. Most of these categories are intensely fashion-driven and hence each seasonal turn in styles and variations takes the number of different SKUs to be tracked into millions. The nature of the retail industry also requires that the data be analyzed real time to enable real-time decisions that can be executed at the point of sale for better ROI from each loyalty customer.
TEG helped the client identify 8 key customer segments which had differential behavior in terms of their shopping patterns. The detailed profiles of these 8 segments now helped the client to better understand the different new members that were being enrolled everyday in the loyalty program. The Big Data exercise also helped the client to,